A system of performance-based, market-standard remuneration combined with long-term incentives plays a key role in making us an attractive employer. Along with monetary compensation, we also provide a wide range of non-financial incentives intended to motivate our employees to go the extra mile for our customers and to retain them for the long term.

Over 70% of all Group employees are employed under contracts governed by collective labor agreements, works agreements or legally binding statutory increases. Monetary compensation includes a base salary plus variable remuneration components such as bonus payments that are subject to local and position-specific requirements and regulations. In some countries, compensation also covers retirement plan contributions as well as health insurance costs.

In Germany wages or salaries are generally regulated through either industry-level or company-level collective wage agreements. In many of our companies throughout Germany, our wage-scale employees also receive a performance-based bonus in addition to their wage or salary. At our principal company Deutsche Post AG in Germany, wage-scale employees generally receive a bonus of between 5% and 17.5% of their annual base salary. Non-managerial, non-pay-scale employees are entitled to a bonus of between 17.5% and 40% of their annual base salary.

Job evaluation system ensures reasonable pay

Development of staff costs

PwC

We apply a systematic job evaluation approach to ensure reasonable and equitable compensation within the company. Positions are graded based on job category and job content alone and in line with our corporate values.

As a responsible employer, our pay structures take into account not only national minimum wage requirements and the needs of our divisions, but local market demands as well. We strive to offer reasonable and competitive compensation packages in all of the markets we serve.

In many countries Deutsche Post DHL Group also provides employees with access to defined benefit and defined contribution retirement plans, and assumes the costs of health insurance and treatment for employees and their family members.

Additional benefits

In addition to monthly monetary compensation, we also offer employees attractive non-financial benefits.

Flexible work modelsWe offer flexible working models which vary according to operational needs and requirements. These measures help our employees to better combine and balance family and career, and can also enable them to remain in employment for a longer period. In response to the aging workforce in Germany, in 2011 a Generations Pact was signed between Deutsche Post AG and the trade unions, which largely comprises a partial retirement program and working-time accounts. Comparable provisions also apply as of 2016 for civil servants employed by our parent company in Germany, Deutsche Post AG.

Family-friendly provisions in GermanyWe work together with a Germany-wide service provider to support employees in their work-life balance choices such as finding suitable childcare service or care for family members. These family-friendly services, which include advice, emergency care and vacation programs, are available to all employees. In some locations, we invest in the creation of company-supported childcare facilities. We also offer a relocation service to facilitate work-related moves and get employees settled in their new environment quickly and easily.

The Recreation Service (ErholungsWerk), which receives financial support from Deutsche Post DHL Group, enables current and former employees and their families to take advantage of affordable vacation offers. Under certain income-related circumstances, children of employees can also receive vacation grants. Such grants were approved for approximately 2,500 children in the reporting year.

Scholarships for employee childrenOur Group-wide Upstairs program provides scholarships for children of our employees. Since launching the program, we have provided over 2,000 scholarships to employees’ children in more than 120 countries around the world, thus helping them to pursue higher levels of education. In addition, more than 400 employee children have received pre-vocational support in the form of application-writing workshops, summer school courses and work placements.